If an injured employee's injury results from serious and willful misconduct, what is the effect on indemnity benefits?

• A. 50% reduction in indemnity benefits
• B. No reduction
• C. 10% reduction if disability greater than 70%
• D. Denial of indemnity benefits

Answer: (A)

When an injury is the result of serious and willful misconduct by the employee, the law imposes a penalty on the disability benefits—the indemnity payments are reduced by 50% for the period of disability caused by that conduct. This reflects a policy to deter reckless or intentional disregard of safety rules, rather than ordinary accidents or negligence. Medical treatment for the injury remains payable, but the wage-replacement portion of benefits is cut in half during the period affected by the misconduct. For example, if the employee’s deliberate actions under safety rules led to a disability, half of the indemnity benefits would be paid during that disability period.